With the start of a new tax year and recent budget changes taking effect this month here are the main headlines that could affect you.
VAT Registration Threshold
- The VAT registration threshold will be raised from £85k to £90k this month
Dividend Allowance
- The tax-free allowance for dividend income dropped from £2,000 to £1,000 from April 2023 and will fall again from £1,000 to £500 from 6 April 2024
Personal Allowance
- The personal allowance is unchanged at £12,570
National Insurance
- Employee National Insurance is reduced from 10% to 8%
- Self-employed National Insurance is reduced from 8% to 6%
Employment Allowance
- This remains unchanged from last year, meaning eligible employers can reduce their National Insurance liability by up to £5,000 allowance
National Minimum Wage increases
Aged 21 and above £11.44
Aged 18 to 20 inclusive £8.60
Aged under 18 (but above compulsory school leaving age) £6.40
Apprentices* (under 19 / 19 or over in 1st year of apprenticeship) £6.40
*Apprentices over 19/ have completed their 1st year of their apprenticeship are entitled to the minimum wage for their age
